Enron Energy Services continues its quest to shore up energymanagement agreements with as many customers as it can. On theheels of an announcement Tuesday that it had signed a 10-yearagreement with Prudential Insurance of America, the Enron Corp.subsidiary announced Wednesday that it had pocketed a $1 billion,10-year energy agreement with the U.S. facilities of QuebecorWorld, the world’s largest commercial printer. The agreementexpands Enron’s original $250 million five-year contract with WorldColor Press, signed in 1998. World Color Press was purchased byQuebecor Printing Inc. last August.

Under the agreement, Enron will supply and/or manage electricityand natural gas at more than 60 Quebecor World facilities in theUnited States. It also will identify, analyze, design and implementenergy infrastructure improvements.

Marc Reisch, chairman and CEO for Quebecor World North America,called the agreement a “true alliance of industry leaders.” He saidthat World Color’s previous experience with Enron in the past twoyears have his company confidence in Enron’s energy managementexpertise.

Said Enron Energy Services CEO and chairman Lou Pai: “Thisagreement enables Quebecor World to outsource a non-core functionand leverage the scale and capabilities of Enron across itsmanufacturing platform.”

The deal announced Wednesday joins a roster of top namescollected by Enron Energy Services in the last year. While somecompanies avoid the limelight, according to Enron’s Peggy Mahoney,the ones that have publicly announced their energy management dealswith Enron include Simon Brand Ventures, the nation’s largestretail real estate investment trust (REIT) which signed a $1.5billion 10-year alliance; Owens Corning, which announced a $1billion, 10-year outsource agreement for total energy managementservices at 20 manufacturing facilities throughout the UnitedStates; The Chase Manhattan Corp., which signed a $750 million,10-year agreement for energy management services for 860 of Chase’sfacilities nationwide; IBM, which signed a $610 million, 10-yearagreement to provide electricity for several IBM facilities; andSonoco, which signed a $210 million, six-year energy managementagreement to provide savings at 150 manufacturing plants.

The 10-year agreement with Prudential Insurance of America callsfor Enron to supply or manage the supply of electricity and naturalgas, and provide related energy management services forPrudential’s 21 corporate-owned office buildings in Arizona,Connecticut, Florida, Illinois, Minnesota, New Jersey andPennsylvania. No monetary figures were released by Prudential.

The two also agreed to work on energy efficiency projects toprovide more economic and environmental benefits at selectedPrudential facilities across the country. Prudential hasincreasingly pursued outsourcing arrangements that enable it tofocus more fully on its core businesses. Along with energymanagement, Prudential outsources property management, foodservices, travel, architectural and engineering.

Enron’s Mahoney said agreements put together so far this yearputs the services division on track to reach nearly $16 billion inenergy marketing agreements in 2000, which would be nearly doublefrom the agreements in 1999, which totaled $8.5 billion. She saidEnron Energy Services had $3.8 billion in energy agreements in1998.

Carolyn Davis, Houston

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